M&A

M&A

Fintech startup Groww to acquire mutual funds biz of IHFL for Rs.175-Cr

Mint   Bse disclosure  

Gurugram-based, publicly listed Indiabulls Housing Finance Ltd is to sell the entire stake in its mutual fund business to Bengaluru-based unicorn startup Nextbillion Technology Pvt Ltd, which runs fintech platform Groww, for INR 175 crore (including cash and cash equivalents of INR 100 crore). The mutual funds business is being carried out by Indiabulls Asset Management Company Ltd (IAMCL) and Indiabulls Trustee Company Ltd (ITCL, the trustee of IAMCL), and registered revenues of INR 4.16 crore in FY21. The sale of IAMCL will be limited only to the MF part of the business, while the alternative investment fund (AIF) and portfolio management service (PMS) will be demerged from the existing structure and remain under IBHFL. Groww, which commenced its financial services business in May 2016, is backed by Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital. It offers a tech platform for investing in stocks and MFs and claims to serve over 1.5 crore users across 900+ cities in India. It is a Sebi-registered stock broker, depository participant and AMFI-registered MF distributor.